RM 33Limits on refunds for certain unit trusts and group investment funds

1. This section applies when a public unit trust or group investment fund—

2. is entitled to a refund under section RM 2, RM 4, or RM 5; and
3. goes into liquidation or chooses to become a portfolio investment entity; and
4. at the time of the liquidation or election, has—
   1. a credit balance in its available subscribed capital (ASC) account on liquidation; and
   2. a zero balance in its imputation credit account.

5. The refund must be no more than an amount calculated using the formula—

   $ASC\; credit\; balance\; \times \; maximum\; imputation\; ratio.$

   Where:

6. In the formula,—

7. ASC credit balance is the credit balance in the ASC account of the public unit trust or group investment fund, as applicable:
8. maximum imputation ratio is the maximum permitted ratio calculated under section OA 18(2) (Calculation of maximum permitted ratios), read as if the words in which the dividend or distribution is paid in subsection (3) were in which the liquidation occurs or the election is made.

Compare

• 2004 No 35 s MD 2A

Notes

• Section RM 33(1)(a): amended (with effect on 1 April 2013), on 17 July 2013, by section 97 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).